DESTINI (7212) - Destini Berhad : a story about a Reborn PN17 Company

Destini was once a PN17 company which know as Satang Holdings Bhd as at 2008. The story turn over once a white knight- an ambitous entrpreneur in Malaysia Rozabil came on board to turn around the company and it came out of the PN17 category two years later.

Currently, the shares are held under prestigious investor include AROMA TERAJU SDN BHD a subsidiary under Ministry of Finance,EXPORT-IMPORT BANK OF MALAYSIA BERHAD, Norwary NORGES BANK the world’s biggest wealth fund and Goldman Sachs and one of Malaysia richest guy Director of Kretam: LIM NYUK SANG.

One would ask why so many institutional investors come into the game? Well, there would some key drivers to the reason.

1. Enter into a MOU with AMMROC (Advanced Miitary Maintenance, Repair And Overhaul Center in April 2016.

2. Accepted a LOA from MoT for the design, manufacture, supply, delivery, testing and commissioning of new motor trolley and new road rail vehicle for a total contract sum of RM62mil.

3.From defence aviation industry ventured into commercial aviation MRO. Rise in demand for maintenance, repair and overhaul (MRO) services within the aviation industry as the passenger is increasing in the SE Asia region

4.Acquisition of Everydat Success, which has an existing of contract value at RM381mil for the defence industry..

Currently, Destini is sitting on an orderbook of RM670mil . With the Revenue and Net Profit in 2015 stands at RM270m and RM21m, revenue and net profit o 1H 2016 has already stood at RM189m and RM16m, 70% of last year Revenue and 76% of last year net profit. It seems that the company would easily to achive higher at the year end and the dream of Rozabil to become a billion dollar company in 3 years would be realistic.

23 July 2015: Destini has issued 107m ordinary shares at the issue price of RM0.70 to DMS.

Target price of Destini

Given the recent Q2 result,

FY16 EPS(E)= RM0.0096 X 4 = RM0.0384

Average PE ratio among these 3 years would be = (20.57+ 26.32+22.61) / 3 = 23.16

Target Price = PE(Forwarded)X EPS(Estimated)= 23.16 X RM0.0384 = RM0.8893

Destini-wa currently traded 1.5sen discount to Destini 0.655 given the exercise price 0.40 and 0.24 at closing yesterday.

Invest at your own risk. Please consult your investment adviser before making any decision.

DESTINI (7212) - Destini Berhad : a story about a Reborn PN17 Company